XLRI GMP 2015-161 | Page Micromax – Marketing Plan 1.Abstract In this project work, we seek to devise a marketing plan for Micromax Mobiles. Micromax Informatics operates in consumer electronics industry. The company manufactures Computers & Peripherals and Portable Consumer Electronic Devices. Smart Phones come under Portable Consumer Electronics Devices. Few key facts: 1. This company was established in the year 2000 as a software firm, headquartered at Gurgaon. 2. It later entered into mobile phone market in the year 2008. 3. The market share in 2010 was 4.1%. 4. As of now, holds the 2nd position in Indian Mobile market from market share perspective. Micromax started as a small player in this highly competitive domain and went on to become 2 nd largest mobile manufacturer. The current market stands at 15.7%. The largest firm in this domain is Samsung, whose market share is 21.1%. Micromax has reached this position by overtaking major MNC Brands such as Nokia, LG, and Sony etc. It also faces cut throat competition from home grown companies such as Karbonn, Lava etc. According to the report released by Gartner, Micromax occupies the 11th position for maximum phone sales to end users in 2014 worldwide with a market share of 2%. This abstract discusses a feasible marketing plan for Micromax Mobiles. It has already seen a meteoric rise in Indian mobile market. For this project plan, we will consider the set of smartphone offerings from Micromax and analyse how we can use marketing strategies to help it climb further in the race. The major competitors of this company can be listed as below: Ran k 1 Samsung Ran k 7 2 Micromax 8 LG 14 3 Karbonn 9 Spice 15 Apple 21 4 5 Lava Intex Microsoft Corporation (Erstwhile Nokia) 10 11 Sony Celkon 16 17 ZTE HTC 22 23 12 Maxx Moblink 18 Lenovo 6 Firm Firm Gionee Ran k 13 Firm Xiaomi Videoco n Ran k 19 20 Firm Huawei Blackberry (RIM) Motorola Mobility Oppo One Plus Micromax's strategy has always been to deliver the right value at the right price. The company targeted the middle class segment by offering feature rich mobiles at a lower price when compared to the other similar phones in the market. Micromax maintains high product differentiation with a large range of mobiles in the market. The company customizes its products as per needs of the target customer. For example, smartphones with camera, good battery life and 3g connectivity for college youth. Initially Micromax became more popular in the rural market, but then Micromax targeted the urban market by launching feature rich flagship models at a lower price. In 2014 Micromax signed a contract with Hugh Jackman to promote its flagship products, which was a first for an India mobile brand. The company has been able to build its brand name and market size based on such and other strategies such as sponsoring cricket matches. Its tag line-‘Nothing like anything’ reflects the uniqueness of all its XLRI GMP 2015-16 2 | Page Micromax – Marketing Plan products. The company has been able to keep up with rapidly evolving mobile phone market with its innovations. The products reflect these innovations and the rapidly growing market share is an evidence for the same. The company also has its major operations based out of India and has performed better than several established global brands in the Indian market. The target of the Micromax is to be mobile market leader in India in coming days through introducing new smart phones with higher technical specifications keeping the price low at the same technology range. We intend to dive deeper into the company philosophy and marketing strategy. This would enable us to come up with a marketing plan/strategy. The aim of our marketing strategy is to maintain & better its YoY growth in terms of market share and revenues, eventually leading it to the first place in the mobile market. XLRI GMP 2015-16 3 | Page Micromax – Marketing Plan 2.Situational Analysis 2.1. Product and the Competitors In this project work, we seek to devise a marketing plan for Micromax Mobiles. Micromax Informatics operates in consumer electronics industry. The company manufactures Computers & Peripherals and Portable Consumer Electronic Devices. Smart Phones come under Portable Consumer Electronics Devices. Few key facts: ● ● ● ● This company was established in the year 2000 as a software firm, headquartered at Gurgaon. It later entered into mobile phone market in the year 2008. The market share in 2010 was 4.1%. As of now, holds the 2nd position in Indian Mobile market from market share perspective. Micromax started as a small player in this highly competitive domain and went on to become 2nd largest mobile manufacturer. The current market stands at 15.7%. The largest firm in this domain is Samsung, whose market share is 21.1%. Micromax has reached this position by overtaking major MNC Brands such as Nokia, LG, and Sony etc. It also faces cut throat competition from home grown companies such as Karbonn, Lava etc. According to the report released by Gartner, Micromax occupies the 11th position for maximum phone sales to end users in 2014 worldwide with a market share of 2%. The major competitors of this company can be listed as below: Ran k 1 Samsung Ran k 7 2 Micromax 8 LG 14 3 Karbonn 9 Spice 15 Apple 21 4 5 Lava Intex Microsoft Corporation (Erstwhile Nokia) 10 11 Sony Celkon 16 17 ZTE HTC 22 23 12 Maxx Moblink 18 Lenovo 6 Firm Firm Gionee Ran k 13 Firm Xiaomi Videoco n Ran k 19 20 Firm Huawei Blackberry (RIM) Motorola Mobility Oppo One Plus However, for the comparison purposes, we would mainly consider Samsung Mobiles from Samsung Electronics. XLRI GMP 2015-16 4 | Page Micromax – Marketing Plan 2. Aggregate Market Factors a) Market Size: Market size by number of handset sold In terms of no. of mobile handset sales in India the current market size in 171838900 units. Consumer prefer to buy handset from electronics and appliances specialist retailer’s from which it can be inferred that the consumer want to physically feel the handset which stratifies their need. Major market for mobile handset is the electronics and appliances specialist retailer’s with 81% followed by Internet retailing with 14%.2. Source: Euromonitor Market size by Distribution Sales of Mobile handset occur through bellow mentioned Distribution channels. Among these units the majority consists of Android Mobile handsets. Category Analysis 2.2. XLRI GMP 2015-16 5 | Page .1. Micromax growth in 2013 was predominately because of 3G enabled XLRI GMP 2015-16 6 | Page .5714 = 57. RELATIVE MARKET SHARE: MICROMAX SHARE/ (LARGEST COMPETITOR’S MARKET SHARE) = 12/ (21) = 0. had grown till 2013 then there was decrease in the volume of mobile sold in 2014 t0 2014. Micromax volume i.14% b) Growth The below mentioned stats proves that volume of mobile handset in India for the period 2011 to 2015 . Number of handset sold in 2015 fell as compared to 2014.e. The same trend was scene in Retail value of mobile phone sold.Micromax – Marketing Plan Market Share by Companies in 2015 In terms of market share Samsung Corp has the highest market share of 21% followed by Micromax with 16% and karbonn Mobiles India pvt ltd with 9%. from 2010 to 2011. Over the period from 2012 to 2014 mobile phones were android based phones so consumer didn’t go to replacement so we see a flat trend in replacement cycle.67% c) Replacement Cycle: The Replacement cycle in India changed with the introduction of smartphone i.e. Micromax mobile growth is because it has introduced variety in mobile phone both in featured and smartphone.15% 2013 2912654 4 34. Smartphone market is changing from high end phone to low cost feature rich mobile phones.351% 12.07% -12. Industry Growth: Retails Value: Micromax Mobile Volume: Micromax Mobile - Retail Volume CGAR YOY GROWTH 2010 6163402.70% 104.Micromax – Marketing Plan less costly android mobile phone.39% 2014 3089332 2015 2697870 4 7 6. introduction of smartphone with internet service changed the replacement of mobile phones in India. Source : Euromonitor XLRI GMP 2015-16 7 | Page . Technological change in mobile handset. 2011 1264451 2012 1425025 9 9 9 105. Micromax – Marketing Plan XLRI GMP 2015-16 8 | Page . hence willing to try new brands. Micromax faced competition with Samsung mobiles in both segments. -Large scale promotion of mobile phone though famous celebrity like Hugh Jackman and through TV channels like MTV. manufacturing plants in china and availability of cheap labor. With affordable price and feature like dual sim phone it heavily promoted its brand with endorsing movies stars like Akshay Kumar. -Profit is due to low cost of manufacturing. We have assumed product instead of SBU. Micromax focused it target consumer to youth segment (Low disposable Income segment). the profit registered is primary due to increase in the sale of affordable mobile phone.Micromax – Marketing Plan e) PROFIT: Micromax Informatics has posted profit since its inception. camera etc. LG. 3 tier and rural areas of India. Micromax has now become the 2 nd highest XLRI GMP 2015-16 9 | Page . Micromax offered variety of phones both in Featured and smartphone segment with low to affordable price range. The company’s cost-competitive phones will be attractive in other emerging markets as consumers in these markets will be price sensitive. Micromax target consumer demographic was the India’s youth. Micromax entered into the market in the year 2008. It promoted products two tier. Growth Stage: Micromax was able to source and work with OEM partners to offer cost-competitive products as Indian consumers do not buy subsidised phones as part of mobile contract. both of which are targeted for youth segment. Youth segment wanted affordable smartphone with maximum features like internet connectivity. f) STAGE IN PRODUCT LIFE CYCLE Product life cycle can be predicted to the basis of BCG Matrix. A product life cycle in a market can be pictured as QUESTION MARK → STAR → CASH COW → DOG (Introduction) (Growth) (Maturity) (Decline) Introduction Stage: Entry into high growth with low market share aiming to create awareness and develop market for product. Different products manufactured by the company can categorized on the basis of Relative Market Size and Market Growth. -Micromax mobile handsets doesn’t use very high end components as used by premium mobile manufactures like Samsung. 3rd in featured mobile phone market Maturity Stage: Micromax has already reached in the maturity stage in the Featured mobile phone. Most of the sales are in the two & three tier cities and rural areas. 2 nd in smartphone market.Micromax – Marketing Plan market shareholder in whole mobile market. Decline Stage: Since the company is new and no product as reached the final stage. XLRI GMP 2015-16 10 | Page . 2. Category Factors CURRENT RIVALRY IN CATEGORY XLRI GMP 2015-16 11 | Page .2.Micromax – Marketing Plan 2. The economic environment consists of factors that affect the consumer purchasing power and spending norms. XLRI GMP 2015-16 12 | Page . as the requirements of semi urban and rural areas differ widely from the urban areas. This market segment is price sensitive too. Micromax has been able to address this factor as well. without compromising too much on the quality front. This also holds true for the semi urban and rural markets. The young buyers are price conscious. location etc. Micromax has been proactive on this front. Micromax makes products which can address the needs of the young generation such as. Seria l No. Environmental Factors Environmental Factors 1 Demographic 2 Economic 3 Natural Micromax Mobiles Demography is the study of human population in terms of age.energy efficient chargers.Micromax – Marketing Plan 2. occupation. screen size etc. using recyclable materials (in product and packaging). Nokia etc.photography. Various steps taken include. and usually places price over the quality.2.3. These steps create a positive brand image of the company. Natural environment involves the usage of natural resources in an eco-friendly manner. It entails usage of mostly eco-friendly components & renewable/biodegradable materials and improving energy efficiency. Location also plays a role. it also launched high end phones which were competing with the other established brands such as Samsung. LG. size. Micromax has hit the target here and this is one of the reasons for its success. Demographic environment is extremely important to Micromax as the entire positioning of the brand is on youth. Micromax has also managed to capture and address these requirements to a great extent. adhering to safety/environmental norms etc. gender. for the consumers who seek quality. internet. However. density. This environment is made up of institutions and other forces that affect the basic values. It also had products to address specific needs such as. while the urban buyers would prefer shopping malls and internet. For example. Utility. when classified on the cultural and social basis. This has enabled it to keep the interest levels of consumers high.Phones with QWERTY Keyboards. Market. this issue was resolved. a rural buyer will buy the mobile phone from nearest available brick and mortar shop. Micromax also focused on the customer service aspect and improved it. the products get outdated rapidly. and distribution channels. famous actor Akshay Kumar and Hugh Jackman have been hired. Any political and legal hassles tarnish the brand name adversely. has its own unique and specific requirements in terms of the language. The users are attracted to the brands which can give them the latest technological features at an affordable cost.such as high battery capacity to address markets who faced power outages. There are several unique innovations by Micromax in their products . XLRI GMP 2015-16 13 | Page . behaviors and preferences. Micromax phones have always been competitive with other brands in the terms of specifications and performance. gaming. multimedia usage etc. Cultural and Social environment affect the thoughts and consumption pattern of the consumers. perceptions. dual sim support to capture users who used more than two phone numbers etc. Association with a foreign actor provides the brand with much needed global image. However. Political Legal environment plays a major role in the marketing decisions of the company. It has also been quick in updating its products and launching new products. The technology is moving at a very fast pace and governed by Moore's law. promotion. 3G. Micromax operates in a diverse cultural market.Micromax – Marketing Plan 4 Technological 5 Political Legal 6 Social Cultural Technological environment is probably the most important factor in the mobile industry today. For promotion in Indian Market. Micromax has kept itself in the race by consistently adopting the newest technology in their products at affordable price. Recently Micromax was entangled in a legal controversy regarding one of its brands (YU) with another company (OnePlus). Micromax – Marketing Plan XLRI GMP 2015-16 14 | Page . including online only supply strategy. However. moto G. High Quality Technology that doesn't cost a fortune XLRI GMP 2015-16 15 | Page Xiaomi . Company & Competitor Analysis Serial No. it is primarily concentrating in promoting handful of devices labelled as moto E. Micromax has been able to cater unmet needs of Indian rural and urban consumer segment. Though Motorola has huge range of mobile phones up its sleeves with various features like dual sim and QHD screen. it is a strong player in India market. Handful of phone sets which are no too different from each other. and moto X has found flavour in Indian tech savvy middle class market with good price to quality combination. writing pen.3. or 5 inch screen but lo in range to cater different market segment. 5-inch screen provided at strategic prices. in terms of product mix to price ration they lag behind other phone makers in the price conscious consumer segment. The moto E. moto G. and moto X. modular screen. Objectives To find and meet various unique needs to in market. high battery life.Micromax – Marketing Plan 2. This defines the making of Micromax as top mobile seller in India in 2014. Overall. aesthetics apart it phones are not much dissimilar from Xiaomi. Samsung has wide range of phone all features that are needed by market. with its phone providing many cutting edge technologies like curved edge. its other product has low visibility. Thus. However. the premium phone segment. To bring new technology To be an innovative company. 1 2 Criteria Micromax Samsung Motorola Product Feature Micromax has number of product with dual-sim. Its ph has dual sim. as is the case when they introduced their curved edge phone S6 in the market. basic phone Price: Strategically priced to penetrate the market. retail stores. giving more importance for features valued most by customers thus bring down the cost. own outlets. Smartphones. It has spent heavily on advertisement through celebrity endorsement like Jack Hughes. feature phones. basic phones Price: Skimming prices. cutti down distributors using direct shipment. Product: Smartphones. decoupling accessories. Place: Available Online through vendor of choice. feature phones. little higher compared to competition. XLRI GMP 2015-16 16 | Page Reduce Cost by cutting cost on advertisement. Differentiator # Micromax has targeted unique needs such providing low cost and high battery life phones to rural market # Introduced First Dual SIM. Product: Cutting edge Premium Smartphones. China.Micromax – Marketing Plan 3 Strategies 4 Marketing Mix Micromax being an Indian company has brought Indian context to the marketing table in the mind-set of Indian consumers. retail stores Place: Online. Promotion: Heavy spend on advertisement using TV. and at same time maintaining the quality. Internet. Promotion: Moderate to Heavy promotion using all channels Simple products. supermarkets. Paper magazines. It aims to be leader of the pack as far as technological innovation is concerned. despite of the fact that majority of its cell phones are manufactured by Foxconn. Cricketing event Samsung claims to bring more cutting edge technology at the hand of consumers. billboards. n frill packaging. basic phones Price: Penetrative pricing Promotion: Light promotion to keep the cost down. Place: Available Online through vendor of choice. and point of purchase advertisement. Celebrity endorsement. DUAL Mode Smartphone # First Universal Remote Phone Product: Smartphones. feature phones. . and sponsoring of Cricket Events. Product: Smartphones onl Price: Penetrative pricing Promotion: Light promotion to kee the cost down. Micromax – Marketing Plan sponsorship. Additional profits comes from little premium over other brands with assurance of quality of product. China>> Micromax Assembly. and has no local aftersales service point. designed to penetrate the market further. Samsung is a big player. India 7 Ability to design new products Micromax strength lies in innovation using various mix of proven technologies. supermarkets. IT is not into research and development of new material/ machine for its smartphone range. additio profit (above norm profits) are driven efficiency in keep the cost of final down. and after sales support. Motorola with its long history in mobile manufacturing Xiaomi produces frill smartphones using existing technologies. It h relatively small ra of smartphones in market. 5 6 XLRI GMP 2015-16 17 | Page . At Xiaomi. 8 Ability to deliver the services Has good tie-ups’ with local market for after sales services. Micromax has traditionally given higher margins to distributors (10-12% compared to industry average of 5-6%) in order to penetrate the market. Profits Strategically priced product. Use of strategic margin over cost. Strong network with own service point in various cities No local aftersales service points Xiaomi is based in China. and global leader with huge spends on research and development of new products such has first curved screen smartphone. Value Chain Foxconn. Place: Available Online. India>>Distribution channels Global Sourcing + Inhouse development>> Samsung Assembly>>Distribut ion channels Global Sourcing + Inhouse development>> Motorola Assembly>>Distribution channels Global sourcing> Xiaomi Assembly China>>Online Distribution throu Flipkart. retail stores. means constant need of hiring and more managers in its ranks. Motorola is not into traditional marketing. Thus can source funds both internally. XLRI GMP 2015-16 18 | Page . Motorola seems too concentrated on Moto E. It. also. Micromax may be new to mobile phone and lately television market. and restr if need arises. and online distribution. and externally with relative ease. Lack of local outlets / services chains hinders away the ability to manage at the last mile. its ability to finance its strong Being one of the largest mobile manufacturer in the world. at retails stores. Company has been in business in computer peripheral business since 1991. micromax has created huge brand equity. Motorola is expected to flex it financial muscles as needed Xiaomi is asset lig company as far a Indian operations concerned. This has led to situation such as stock out. Samsung has strong presence in India. Being online only playe need to finance a limited. It go to market strategy includes supermarket. Micromax has grown very rapidly. retail stores. Kiosk at supermarket. Moto G. It has more aggressively opened outlets and service centre across Indian Cities than any other mobile player in the market. and Moto X further development /improvement / enhancement. but it in new company. New Being online play with limited set o products it is expected to just upgrade the exist mobiles.Micromax – Marketing Plan 9 10 11 12 Ability to Market Ability to Finance Ability to Manage Expected Future Strategies Huge Marketing spends with celebrity endorsements. With online only presence in smartphones. Being one of the top 10 smartphone manufactures in the world. Samsung is big brand. Samsung has made huge marketing spends. and use of many advertisement channels. It has made the product available online. Xiaomi follows philosophy of keeping prices low with low spending peripheral activit including marketi It largely depends online presence a word-of-mouth. New pro Samsung expected to continue to innovate in premium end. coupled with its strong presence in India. With firm well entrenched in Ch its ability to mana Indian operations restricted. Expect continuous product flux with innovative targeting. This. own stores. though tough but is good position to be in rather than facing issue of surplus. XLRI GMP 2015-16 19 | Page launches are not expected.Micromax – Marketing Plan product launches are not expected. . Micromax – Marketing Plan XLRI GMP 2015-16 20 | Page . Though there are some premium phones which are liked by high income persons. in response to differing preferences. Present market segmentation of Micromax is as follows: Dimension variable s market trend demograph ic Age Micromax is a youth oriented brand. target customers are identified. the needs of these customers are ascertained. Sample size of the survey: 68 Range of age: 20-45 SEGMENTATION OF MICROMAX MOBILE MARKET: “Market segmentation involves viewing a heterogeneous market as a number of smaller homogeneous markets. In house data XLRI GMP 2015-16 21 | Page . Customer Analysis Customer analysis: In customer analysis. Identification of the correct market segment is an important step to enter any market. and then it is specified how the product satisfies these needs. Income range Micromax phones are more popular in low to mid-price range.4. We made a survey to look after various customer needs and tried to analyze the data based on some pre-defined parameters. Its target customers are of the age group 15-35. attributable to the desires of consumers for more precise satisfaction on their varying wants” Micromax Informatics Limited is one of the leading consumer electronics company in India and the 10 th largest mobile phone player in the world & The country’s second-biggest mobile handset vendor. Hence its most popular brand in socio economically weak class.Micromax – Marketing Plan 2. Micromax – Marketing Plan Behavioral attitude toward product Common opinion towards Micromax mobile is. for as data are collected concerning the manner in which consumers actually behave in the marketplace. Factors affecting customer behavior are: ● ● ● ● ● Age Income Price brand after sale service XLRI GMP 2015-16 22 | Page . Brand value scale User status Demand of smart phones has increase significantly in past 3-4 years. it’s a great product at low price. Behavioral variables represent an excellent segmentation tool. CONSUMER BEHAVIOUR: Behavioral segmentation focuses on the behaviors that consumer’s exhibit in marketplace. Users are getting more prone towards using internet services through phone. Micromax – Marketing Plan Based on these parameters we tried to trend the behavior of the mobile phone customers through several questions. as followed: Question asked Customer response What is your favorite mobile brand Do you feel after sell service important for you? What age group you belong to? XLRI GMP 2015-16 23 | Page . XLRI GMP 2015-16 24 | Page . SEGMETATION: We tried to determine the position Micromax as a brand in the mobile market in India. Before proceeding in the perceptual mapping we tried to analyse the data through Scree plot. For the purpose of analysis we used several parameters to determine the perceptual mapping.Micromax – Marketing Plan How you buy a phone? If you buy a smart phone what feature you look for? Another approach to understand the market segmentation of Micromax in mobile market is through CLUSTER analysis. where We get K=3. The analysis is given as follows: CLUSTER ANALYSIS The final cluster analysis show that distribution among 3 clusters. the results from the survey are segmented in 3 cluster in equal numbers. we can perform the perceptual based on two or three parameters. Brand Loyalty. The Cluster show the segmentation with respect to Price. Service and Involvement.000 3 40. The change in the Initial and Final clusters Centres show that the data set i.000 2 14.000 XLRI GMP 2015-16 25 | Page .e. In this we removed the Age and Income data as these two data set where similar to each other in most cases Final Cluster Centers Cluster 1 2 3 5000 25000 11200 BrandLoyal ty 3 3 3 Service 6 5 5 Involveme nt 5 6 5 Price Number of Cases in each Cluster Cluster 1 12. The Graph between Price and Brand loyalty shows the concentration of data set point in Medium and affordable price range. Which also shows that for given price range customer prefer Micromax mobile and also like to be affiliated with it.Micromax – Marketing Plan From Scree plot we found that. The Company’s first bet was on feature loaded feature phones.This was the time when Samsung was introducing Smartphone’s that were priced at premium price points. TARGETING: Micromax uses SINGLE SEGMENT BUT FULL LINE PRODUCT strategy to capture the mobile market in India. Then there was a phone for gamers. After this it introduced the first dual-sim dual-standby phone. One of the earliest phones Micromax introduced was X1i that promised 30 days battery backup.000 The regression curve between Involvement and Price changes as the price changes. the X600 Gravity. XLRI GMP 2015-16 26 | Page . The aim was Nokia phones that were the bestselling phones in India during 2008-2011. the number of buyer is very high when the mobile phone is in either affordable price range and medium price range.000 . They targeted almost all possible segments in mobile market. with given factor customer are more involved in affordable and medium priced phone i. a phone with built-in Bluetooth and the journey took to new heights by the year 2012.Micromax – Marketing Plan Valid Missing 66.e. 82 0. Service) (Price. The Company needed to find a suitable peg to shake the Indian urban market while also gaining on sales figures.72 0.Micromax – Marketing Plan In a market where there were almost no gadgets aimed at ladies.58 0. The company launched Q55 and A55 in its Bling series especially for women.3-inch) in India at premium prices.01 -0.59 -0. the company took the courage to introduce a phone aimed at ladies only. Involvement) XLRI GMP 2015-16 Positioning Dissonance Reducer Value Seekers 27 | Page . With Samsung as the only company selling 5-inch Galaxy S3 (4.29 Factors (Brand. without the fear of being branded as sexiest.8-inch) and a bigger Note (5. PERCEPTION MAPPING ON BASIS OF 2 PRINCIPLE COMPONENT ANALYSIS 2 factor P: Rotated Component Matrix Component 1 2 Brand Loyalty Service Involvement Price Factor F1 Factor F2 -0. Micromax zeroed-in on the 5-inch segment.07 0.09 -0. The target it laid for it was making a 5-inch device affordable to everyone who wants one. Micromax – Marketing Plan XLRI GMP 2015-16 28 | Page . speed. XLRI GMP 2015-16 29 | Page . dynamic of the youth. will challenge ourselves to create product that 1.Objectives 3. Corporate Objectives Corporate Objective: “The Generation Y device “ In India 50% of population is below 25 years of age “THE YOUTH”. A mobile device for every youth in this country that represent the independence. Affordable Phone with no compromise in technology. As the market leader in the smartphone we want to inspire the youth of this country. Caters to the needs of youth 2. energy. Increases the market share of company 3. Through our core value and commitment. we want to create a product for the youth that caters their needs.Micromax – Marketing Plan 3.1. Micromax – Marketing Plan 3. (As shown in above) We concentrate our report on the divisional objective of phone segment of the company. Division Smartpho ne Present status Objective ● Micromax has 12 smartphone models. ● Micromax accounted for 22% of India’s smartphone market share in the October-December 2014 quarter (Q4. Future projects/plans: XLRI GMP 2015-16 30 | Page . ● Preparing to expand business beyond Indian soil. Divisional Objectives Various divisions of Micromax are: ● Presently Micromax holds the biggest position in the smart phone market in terms of market capital in India.2.8%. ● Micromax will keep updating its product portfolio with the latest technology (Hardware & Software) available in the market. ● Presently ranked 10th in the global smart phone market with a share of 1. Starting as a mobile phone manufacturer.2014) ● Micromax’s growth is expected to continue in its domestic market and international expansion targeting affordable price range phones ● The company will launch nearly four new handsets every quarter catering specifically to needs to the younger generation. Micromax expanded its business in other verticals of consumer electronics also. Russia. the next destination of Micromax mobile. ● The company has recently set up a merger and acquisition team to scout for start-ups working on new and interesting technology that could add value to its business. and dropping prices are looking to buy premium phones. the forecast / objective for Micromax in 2016 is an increase in volume sold of 37.3. Micromax executive should be vary of slew of android phones coming each year with increasing higher technology. 3.12 2012 22% 0. At the same time.00 0. customers would choose to replace their phone.3.18 2013 13% 0.18 2013 104% 0. The trend is visible in case of increasing net profit (Rs. calculated using weight average method.Micromax – Marketing Plan As growth has slowed and competition intensified in smartphones. or even cheaper while availing an exchange offer.42 2015 -14% 0.2. This present a unique opportunity to Micromax to leverage Its Brand to capture bigger market share.12 2012 180.27 2014 -20% 0. on back of increasing salaries.42 2015 282.42 2015 -13% 0. Technological improvements have drastically reduced price of ownership of smartphone. Marketing Objectives 3. 5000. Therefore. following strategy points can be utilized: i.62 - Based on this projection. Micromax are entering the market.62 3.30 0.) Weightage 2011 178.93% - Forecast 2016 37.3. and used in case of Micromax. If found to be even a bit of hassles. Industry – Growth YoY Growth Weightage Volume Micromax Growth YoY Growth Weightage Volume – 2011 22% 0. have disappeared. Micromax . Today. maturing target market.Profit Net Profit (Rs.). and each year couple of new players like Xiaomi. 1 year can be considered to a long term time frame. Last 5 years have seen a great deal of activities.65 Forecast 2016 317.46%. Cr.27 2014 6% 0. a dominant mobile phone player in 2005.3.12 2012 13% 0.65 Forecast 2016 -7.18 2013 12.46% - The decreasing volume in last two years are due to complex interplay between technological advances.00 0. Smartphones have reached more urban and rural households. Customer Retention To maintain customer base. and gradually shift toward high end phones. Time Frame Given phone is a high flux industry. Volume & Profits India mobile phone industry in 2014 -2015 has reached a matured stage compared where it was at 2011. Given below are growth volume projection both for Industry and Micromax. After Sales Service: After Sales Service is a huge pain when it comes to Mobile devices.3. an increased figure 0f 317.1.00 0. The customer.65 2011 105% 0.27 2014 185. a good quality smartphone can be purchased at Rs. wherein establish players like Nokia. 3.00 0. This is a category traditionally been owned by feature phones. manufacturers have started to look to wearable electronics to generate revenue growth. after sales service must be improved and new XLRI GMP 2015-16 31 | Page . Cr. This may lead to decrease in the customer base. select and buy the products.Micromax – Marketing Plan innovations must be brought to make after sales service a better experience. ● Improving product quality: Improvement of product quality would better the image of the intermediaries as well. Therefore it is critical that Micromax pays attention to retaining the intermediaries. This is imperative that these locations be covered by service centres. how they are able to compete against the similar performing mobile phones of other brands ● Promotion: Better promotion leads to better recognition of the brand name and the dealers spend lesser time convincing the customers to buy the products ● Distribution Efficiency: Micromax has to analyse and forecast the demands from different regions and enable supply accordingly so that stock outs do not happen.4. thereby bettering customer retention. The experience of changing over to a new Micromax phone can also be enhanced through software. ● Incentives over online sale portals: In today’s context. a majority of customers are buying through online stores who offer them very competitive prices and quick delivery. whereas it will be a relatively new concept in India. Stock outs can have negative effect on the brand image and dealer’s reputation. This is currently being offered by some of the major brands in foreign markets. intermediaries would prefer the phones that get sold out quick. ● Improvement in Product Quality: Gradual improvement in product quality will lead to lesser after sales service incidents being logged ● Opening up of more service centres: Micromax has a good presence in rural and semi urban area also. If executed with due diligence. the sales for mobile phones also depend on the technical know-how of the salesmen. Few points in this regard are summarized below: ● Improving brand image: Brand image plays an important role in the customer’s decision process. ● Training the distributors and dealers: Place and promotion are very important aspects of the products under consideration.3. Micromax needs to work on it’s after sales service strategy to better it. to improve customer retention. ii. As new mobiles are launched. Hence Micromax should encourage and offer its dealers and distributors special incentives to stock and sell its phones. XLRI GMP 2015-16 32 | Page . especially in urban and semi urban markets. customers can be given a choice to trade in their old mobile phones to get a loyalty discount on the new products. Improving the brand image will improve the sales and make the job of intermediaries easier. this can boost revenues and improve customer satisfaction. This will better customer retention. Some points that can be useful are listed below: ● Provide a comprehensive warranty including accidental damages.where sales happen through word of mouth publicity and based on personal relationships. Intermediary Retention Intermediaries are very important components of the value chain. Additionally. Proper training would enable the dealers to pitch the right product to right customers. Brick and mortar stores are slowly getting affected by this trend. Exchange Offers: This is a good business idea. 3. Also. and it is through them the customers search. especially in the rural market. Customer Targets Driven by growing aspirations of the Indian mobile users. and tech geeks in terms of understanding and handling technology on their tip of fingers. Hence they came up with strategy of releasing a XLRI GMP 2015-16 33 | Page . The major differentiating factor of Micromax is that it has managed to distinguish different unique needs of customers and offer a product that solves them such as providing rural customers with long battery life.1. In fact they gauged a fact that this generation of youngsters are prone to try new products with better feature very frequently. with about 60% of the users under the age group of 20-35 yrs. So they tried to capture the market of smart phones suitable for everyone’s pocket. Micromax launched its Q55 IIFA limited edition handset at the IIFA award function on June 5. and Micromax utilizes every opportunity to connect with the youth. Today the mobile phone category is driven by youth.Micromax – Marketing Plan 4. which provides all customer needs in a single unit. Micromax is the first mobile handset making company who targeted the women customers of India through their unique value proposition. 2010 in Sri Lanka.Product Strategy 4. Micromax segments the young “GEN next” Indian population in majorly 3 parts as follows: Target the college/school going youth: Micromax understood the pulse of today’s youth of age group 16-25. internet alcoholic. stylish phones that are affordable. which are information savvy. Micromax came up with CANVAS series. and providing urban customers with the best variety at least cost with excellent quality of smart phones. so girls love to flaunt them. Target the GEN next girls and women: Micromax grabbed the insight that GEN next girls are technologically smart and stylish and that the mobile phones have become a new fashion accessory. The company’s success could be attributed to the ‘Out of the Box’ thinking and thus providing Innovative & insightful products to the masses. the target audience is youth who want innovative. Micromax understands that building connect is all about being involved with the customers and also giving them the value for money. The dream of the company was to have a phone chiefly targeted at women and make it feature rich to make it a popular hit within the female community Target the working professionals: Present day working professionals are driven by some expectations from their mobile phone Taking care of all these requirements. For Micromax. Micromax has geared up to bring about a paradigm shift in the way cell phones are used by introducing ground-breaking mobile solutions technology. Micromax – Marketing Plan new model every now and then. In 2014 the figure was 67. This indicates how they are populating Indian mobile market with their brand. up to September they has released 55 smartphones in various categories. XLRI GMP 2015-16 34 | Page . In 2015. XLRI GMP 2015-16 35 | Page . These are basic feature phones. Their low cost feature phones can be described as yet another attempt to increase their reach and market share in rural as well as technologically challenged customers and an attempt to become a mass player in this segment. 68% of all phones sold in India are feature phones and Micromax want to capture this market with their low end feature phones. Looking at the needs of the market. instead of a box. Again. Micromax is strongly present in this category with a whole range of models that caters the basic needs of the rural India. Micromax has launched their cheapest phones : Joy X1800 and Joy X1850. one of the firsts that Micromax has introduced in India’s fiercely competitive phone market. which have been packed in a pouch.Micromax – Marketing Plan Rural market customers: While featured phones with basic features of other phone manufacturers are getting obsolete with time. Different SKU's are all too similar with just incremental feature addition. Very Large number of SKU's covering needs of lower middle class to Upper class. Small number of SKU's only couple of SKU's Strength Good assortment covering both rural and urban needs coming through innovative designing. Brand Image: Samsung targets largest number of segment on back of its brand image as company that brings the new technologies faster to the reality Price Based: Motorola provides no-frill products.Micromax – Marketing Plan 4. Efficient no-frill manufacturing and cost-effective distribution Efficient no-frill manufacturing and cost-effective distribution 5 Weakness No SKU in the upper premium segment (>35000). Price Based: Xiaomi provide no-frill but hig quality product at a lo cost. Only couple of SKU' 2. SKU's are not customize as per Indian needs Different SKU's are all too similar with just incremental feature addition. 3 4 7 XLRI GMP 2015-16 36 | Page . 1. SKU's with similar value proposition are expensive compared to other brands. Feature/Bra nd Micromax Samsung Motorola Xiaomi 1 Product Stage Growth Maturity Maturity Introduction 2 Advertiseme nt Budget Heaviest heavy low low SKU's Very Large covering needs lower class to upper middle class. Samsung research capabilities enables it to bring latest technologies first to the market.2. Competitor Targets Seri al No. 6 Opportunitie s Growing demand for smart phones Growing demand for smart phones Growing demand for smart phones Growing demand for smart phones Competitor Strategy Targets Price Based: Micromax target is to capture Indian Mobile market by providing product customized to the local needs at a low cost. Xiaomi. The various product features for the Micromax devices required to target the defined customers are listed out below: a. ● Micromax should introduce such accessories. b. Almost all manufacturers tweak the stock operating system and provide some key functionalities to attract the users. Accessories: ● The mobile phone market today is also driven by accessories available for the phones. these features can be easily incorporated in the products. Micromax could also provide such features in few of its phones. The accessories enhance the customer experience. which are innovative in nature and enhance the customer experience. but build quality & performance are important factors for them. have already incorporated these qualities in their own products.Micromax – Marketing Plan 4. 4G connectivity: ● Cellular operators like Airtel are pushing hard for its 4G services which are better in performance compared to 3G and are priced equal to 3G services. Camera: ● The mobile devices have started doubling as full-fledged cameras for all practical purposes and hence cameras have become an important selling point in the mobile market. ● Another issue is the battery drain while using 3G/4G services. Reliance is soon going to launch its 4G Services in the country. e. The phone should have enough firepower to bring out the software features. ● Additionally. Some of the competitors like Samsung. The offered products should have capability to handle the battery drain suffered and provide a better battery backup. c. ● Security is an important concern for everyday users. which enables taking selfies even in dark conditions. and Motorola etc. ● Micromax should work on improving the camera quality of the phones. The various services features for the Micromax devices required to target the defined customers are listed out below: a. Micromax should work on the some innovative features and bundle it along with the phone. The accessories include a wide variety of products from camera add on to selfie sticks to colourful panels. ● Performance is important because of increased focus of customers towards gaming. The phones must have basic security features. the camera is also used in several video conferencing apps such as Skype and hence the camera quality becomes all the more important. After Sales Services XLRI GMP 2015-16 37 | Page . Also. the touch screens are made of hardened and scratch proof glasses. d. at least for the flagship models. Product/Service Features The customer segment for Micromax has been defined in the earlier submissions. The mobile phones complement and drive the sales of accessories and vice versa is also true to some extent. ● 4G will soon become the norm for connectivity and hence a deciding criteria for the purchase by the customers. providing better security features would attract them even. Software features: ● One of the USP’s of cellular phones today are the software features. ● Cell Phone manufacturers are using metallic/hardened poly carbonate shells for their phones. multitasking etc.3. ● Some competitors have come up with innovative features like front camera with flash. Build Quality & Performance: ● Although Micromax targets the customers who are price sensitive. Although currently Micromax is not targeting enterprise customers. ● With advancement in technology and economies of scale. 4. ● For most needed parts.1. 4. Front camera for Selfie and rear camera for HD video shoot. ● For example. o Two in One: Dual sim phones enable you enjoy the advantage of two mobile in one.2. Approximately 81 % through Electonic Reatailer and 14% through online. the service centres should provide a standby phone to the users. Each metro should have at least one showroom at the primary business locality. 4. o Powerful and Slim: Micromax Mobile phone uses latest mobile computing technology. But the question is how much are you going to pay for a mobile phone? Micromax Mobile phones ranges from 5000INR to 21000INR. Use one sim for data package and another to make call. Micromax has incorporated new corning gorilla glass feature in all its smartphone which provide safety to mobile screen against scratches. Perfectly for full day use with no compromise on performance. Micromax “Knight” series mobile phone is one of the light weight phones in the market with full HD IPS technology and stunning design. For premium phones. all phones are updated with latest updates of android operating system. until their phones have been repaired. Value Proposition o Affordable: Micromax offers the best mobile phone with the most affordable price in the market. Micromax mobile phone have always improved its design feature. o Stay updated with latest technology: All the smartphones are android based phone. Expandable Memory with use of micro –SD card you can store all your music.Micromax – Marketing Plan ● After Sales Services play an important role in building the brand of the manufacturer. Product Positioning In India the Distribution\ Buying of Mobile phones primarily takes place at electronic retail stores and then through online shopping. The staff must be trained to handle the issues and customers. Addition of new hardware like snapdragon and mediatek processor has significantly increased processing power of mobile Phone. A poor after sales service can destroy the reputation of the brand. the service centres could provide free pick up and drop services for the defective and repaired phones respectively. o Do more with efficient battery: With large battery power Micromax mobile phones offers stand by time of 175hrs and talk time for 8 hrs. b. ● Service Centres are important because they are instrumental in providing the after sales services. Core Strategy 4.4. Software and hardware coupled such that is minimizes the battery consumption. trying to reduce the weight and thickness of its mobile phone. Micromax has also increased its no. an inventory can be maintained at local service centres and there can be regional repair centres for the heavy repairs instead of having a central repair centre.4. new Octacore chipset as soon as the chipset is launched. photos and documents o Don’t miss to capture any moment: All smartphone have both front and rear camera. Their number in the given city should be in proportion to the volume sold. Micromax has also tied up with google and launched android one mobile phone in India. ebay and amazon. A price for each category of customer. the tag line “Nothing like anything” self-explains this. and new hardware. Micromax should plan and open company owned showrooms and stores in metros. 16 megapixel camera with fast image capturing and low light performance enable to take image anywhere anytime.So micromax offers its product mainly through its Retail outlets and through online sites like flipkart. of reatils stores in semi urban and rural XLRI GMP 2015-16 38 | Page . office application. Now days mobile phones have become a common part of our lifestyle with high speed internet technology mobile is not limited to making call rather than it serves functions like internet communications. Micromax should look at improving their after sales services and several innovations can be made in this aspect. Showrooms and Service Centres ● Showrooms push the brand image of the firm. Marketing Programmes: Strategy 5. Now they have started selling product in Russia as well. Introduction of Celebrity They roped in some of the biggest celebrities to attract customers. Sponsoring Indian Cricket Matches In India CRICKET is synonymous to religion. With this strategy they reached to millions of customers. Cheap in price and high in quality. d. From print media (like newspaper promotion) to electronic media (like online promotion in various blogs and social media). f. What Micromax does is “Right product at right time at right price”.1. only competitor in terms of launching handset is Samsung. Every quarter they bring a new handset. c. They opened outlets and service centres more aggressively than any other mobile company even beating Nokia. They have product for all categories and for all type. Right product strategy Micromax knows what Indian wants. Reach to Indian market Soon after launching their own mobile handsets in the market they started opening outlets all across Indian cities.000 retail outlets in India. May be not more than one or two years. 5. Here are the marketing strategies which Micromax followed: a. expanding its reach and market share. from visual media to (like television) to promotion through online shopping stores (like flipkart). In 2014-15 they paid 20m INR to BCCI per match. Micromax also has an extensive distribution network with presence in more than 560 districts through 125.Micromax – Marketing Plan areas. they have touched all corner stones to reach to customers in big way. But Micromax knew that Indian people love cricket more than any other game and serial. b. but the product lives of all companies are same. e. Innovative packaging: XLRI GMP 2015-16 39 | Page . Introducing Huge Jackman as brand ambassador for canvas series of mobiles and roping in Twinkle Khanna for their woman oriented phones they created an environment of trust among the customers. allowing the company to sell to second.and third-tier cities and thus. Media channels: Micromax targeted all available customer promotion option to reach their customer. Of course their product’s quality is lesser than that of some of the premium brands. Through this they become a household name in all cities and quickly made its own identity. So they sponsors a lot of domestic cricket series. Integrated Marketing Communications Programmes Several successful marketing strategies has been implemented to take Micromax in first 3 position in mobile market. Recently The Company unveiled its first two handsets in the series – the X1800 & X1850. thereby improving the bottom line of the firm. MAd allows users to watch advertisements and earn points from every advertisement one views. introduced Micromax MAd. R&D is almost similar for the entire product portfolio. This product family can be priced higher to target high earning customers.Micromax – Marketing Plan Micromax attracted customers through their innovative packaging strategies. Channel Strategy Micromax’s focus area currently is B2C segment. h. first ever pouch packaging phones in the market offering unparalleled value to consumers. only behind Samsung). We suggest that it also focuses on B2C Segment. which comes pre-loaded on its latest smartphone Micromax MAd A94. To make the new product family successful. hence it would benefit the entire product portfolio. With one time registration. With a simple 4 step process. the Canvas Xpress. Innovative promotion platforms: Micromax. value add-ons and quality of the product. Micromax had exclusively tied up with Flipkart. In our opinion. They provided an opportunity to the millions of Canvas Spark fans. Pricing Strategy Today the Entry level and smart phone market has a high number of firms jostling for market share and hence all firms face cut throat competition from each other. g. Therefore it is very important to combine pricing and quality of the product to arrive at the right proposition. All these extensive promotion strategies made Micromax a leading mobile brand in India. This is where pricing strategy assumes prime importance. 5.com to ensure that Micromax fans are able to successfully purchase the product. they do not need to pursue this policy. The money eventually credited into their post-paid/prepaid accounts. A firm needs to grow its bottom line for continued focus on R&D and thereby improvement in products. We suggest that Micromax continues to sell its product portfolio on the pricing strategy that it has been following. Micromax is an established brand now (2 nd in market share. The target customer base for Micromax is price as well as quality sensitive. The channel is depicted in the flow chart given below: XLRI GMP 2015-16 40 | Page .3. We suggest that Micromax adds another product family of high end smart phones. India’s largest e-commerce marketplace to launch its latest smartphone. a unique application designed for those who love ads. which would rake in cash. the service worked for all opted-in subscribers across all telecom operators. On the same note.com. as it does not contribute to the bottom line of the firm. Micromax adopted penetration strategy in past to gain market share.2. Special promotion through online shopping stores: Micromax tried to reach new age netizens through attractive offers and exclusive promotions in online shopping stores. which then can be converted into rupees. 5. they would need to focus on design. by offering its first ever open sale for the smartphone on Snapdeal. Customer Management Strategy a) Customer value proposition: What we provide to customer to reduce their search in buying and associate their values with our product. 2) Greater Durability: long lasting battery backup.Micromax – Marketing Plan The Channel is an important component of the marketing strategy for Micromax. Micromax mobiles are sold in shops in Shopping Malls as well as small phone booths in villages. The key to keep channel working in Micromax’s favour are incentives to the channel partners and constant demand. this segment could prove very profitable for Micromax. Incentives to channel partners can be increased if the bottom line improves. light weight but rigid. (Mobile Phone) 1) Multifunctional Phone : Easy to use i.e. Premium quality in affordable price with latest technology. keep all thing in one place . large number of product range.Capability of handing dual sim. The enterprise is a market segment which Micromax hasn’t focussed on yet. internet browsing are very user friendly . Dust resistance. B2C selling can be done directly through Distributors. Therefore Micromax needs to improve the bottom line and better the quality of the product. With increasing acceptance of mobile devices in corporate workings and BYOD. this segment requires a shorter and therefore channel that has a higher efficiency. 5. XLRI GMP 2015-16 41 | Page . connected to cloud so can access your desktop or laptop. scratch resistance body. The B2C Selling follows a longer channel route because of the huge geography and demographic spread. Customer demand can only be generated if the products are successful.4. High end camera. functions like testing . High Quality Audio-Video Quality. Hence efficiency of the channel is very critical for success. Also. Expanded memory for applications and other things. 3) Value for Money: As per your budget choose the best mobile Phone. service. Thus. Customer segment manger to have high resources for creating information flow from bottom to up and in marketing. channels. Customizable home screen and navigation keys 6) After sales services: 1 year warranty on product and parts. Each of the above mention steps of customer need fulfilment value chain. and hardware. Growth depend on the after sales and support service what is provided. pricing. 2) Durability: A Mobile is majorly targeted for youth segment it is expected to have a rough usage. large no. — should be considered and described in the design. 3) Making brand decisions subservient to decisions about customer relationships. Non Light reflective screen 5) Free update: Pre installed software for office and personal use. It has been a smart marketer of its brand and products. Light weight. product should be built in such a way that it can withstand rough usage. sensory engagement.5. b) Customer Centered Brand Management 1) Fast and Effective After sales and support services: Having captured the market and occupying large volume of mobile handset in market doesn’t help to sustain the growth. free android update. It should also focus business re- XLRI GMP 2015-16 42 | Page . is value point that can be developed to attain higher efficiencies.Micromax – Marketing Plan 4) Aesthetic appeal: Slim and sleek design. How fast Mobile handset is repaired or problem is solved such that it doesn’t spoil the name of brand basically by word of mouth. Selecting the needs that can be served leveraging the company’s capabilities. either by improving existing approaches based on new insights from the architecture or by developing entirely new ones. touch points. c. b. and establish brand differentiation. Research Micromax has been very successful in understanding the market and capturing the essence into marketable products. Recognizing unmet needs of different market segments. and next-generation of operating system. 4) Building on customer Experience: Hosting a website for customer to give feedback and providing a place for interaction. Pricing to attract the customer to the point of sales. 5) Experience design — Determine how to meet the segment-specific needs in each business segment. All the levers of customer experience — product. Smart marketer meansa. g. 6) Retail Outlets and Supports stores should be located such that it can be accessed by customer easily. 5. Get paid for watching add. firms Research and Development should not just focus on the technological aspects – such as next generation product assemblies. pick up service for repair. facilities. etc. multiple color options. Post purchase servicing to build brand loyalty. content. Selecting the potential market segments Designing products to serve the selected market segments unmet needs Communicating the product features Establishing the channels to reach the targeted customer segments. d. f. of after sales office across all cities. h. complete replacement in case of defect. e. having a one larger store in a city it’s better to have multiple small store across the city. operations. that spend on Research and Development is need not just for bringing out better products. This is one area which many players have recognized as their key focus area. A high number of Micromax product contents are sourced from foreign vendors. though has taken some initiative in the direction. and application of behavioural economics. The can further drive down the cost of manufacturing and go to market activities by using greater localization. Micromax has been highly successful in understanding the needs of its customers. however. socio-political. This is an area of core strength for Micromax. and to develop smarter business process. much more is expected from Micromax if it need to build and retain its position as Market leader. Micromax. supply chain etc. but it is also a signal to market that the firm is serious endeavour to be innovative leader of high quality products in its segment. As mentioned earlier. operations. This exposes Micromax to foreign exchange. It should be noted. There exists a market trend for greater involvement of customer / customer opinion in the product designing cycle. XLRI GMP 2015-16 43 | Page . and country risk. quality.Micromax – Marketing Plan engineering activities that embedded innovation as a culture into all steps of the business value chain encompassing market research. Micromax should loosen it purse to have higher expenditure on Research and Development activities. Some of Micromax local competitors such Lava have recognized this need and have setup Research and Development centres in India to build in-house capabilities. logistics. Micromax needs to protect its core competence in this area by further integration customer through greater market research. a field of social science that has been attracting most innovative companies across the globe. 8% 2015. growth rate of the company. In 2014-15. Source : Euromonitor. advertising. The budget allocation depends on several factors: present market trend. However. By March 2015.). 'Exclusive' online only smartphone sales have contributed to more than 20% of the total smartphone sales between July and September so far. Micromax. it posted sales of over Rs 10.The % of sales through internet has also incresed from 9% in 2014 to 12. etc. XLRI GMP 2015-16 44 | Page .1. sales collateral. From the below mentioned data we can that the sale of mobiles mostly takes place from Electronic appliance and specialist retailers. competitor’s position in the market etc. Marketing Matrix Defining Marketing Metrics for micromax mobiles. 6. which is already paying good dividends to the brand.). events.Micromax – Marketing Plan 6. more than a third of it goes towards online campaigns. Micromax spends about 2% of its sales on advertising and marketing.Controls 6. Budgeting: Financial budgeting for marketing is done by allocating a percentage of the actual or projected gross revenue. according to Counterpoint Research. used to spend about 10% of its marketing budget on digital media until 2014. They have kept it as their flagship product and has diverted 60-70% of their marketing budgets towards it.2. blogs. Financial Controls a. Micromax would spent about Rs 200 crore in promotions and advertising. This budget is split between: 1) Brand development costs (which includes all the channels those are used to promote Micromax brand such as website. Recently Micormax has roped in actors like Kapil Sharma and Daggubati for a period of one year and have big plans for its Bolt Range. sponsoring cricket series etc.So it would be much wiser to target these two areas under maeketing metrics.000 crore. and 2) The costs of promoting business (campaigns. the rest of the marketing spends will be for the Canvas Range. Now. g) Valuable service to loyal customer and providing distinctive offers to maximize the number of product user. e) The matric should be such that it can measure the average value of a sale. Currently micromax uses celebrity endorsement for only one product and same celebrity for upcoming product which may produce confusion among consumers. Through Advertisement and Sales promotion micromax should increase the awarness about its higher end mobile phone and other product. Feedback on failure should be included in the matric XLRI GMP 2015-16 45 | Page . average number of sales to each customer per year and average number of years a customer stays with your company. Addition of new features and upgrading technology in product and lauching then at regulat interval should be used. The frequency of new phone should be matched properly if the product launch is fast then loyal consumer or current consumer may not buy the phone. c) Tuning up your program based on the sales tracking. c) Change in Behaviour: sales promotion and advertisement should change the buying behaviour of product . email. micromax should measur the effect of promotion and advertisements with keeping following points a) Defining the potential growth which the programme intend to produce. Advertisement can affect the consumer in following ways: a) Change in Awarness : Micromax has not yet evolved as big indian brand . h) Analyzing data from web. d) Analyzing Return on marketing investment (ROMI) . postpurchase surveys.Micromax – Marketing Plan Sale promotions. b) Change in Perception: Micromax should try to change the perception in which consumer associate its products with them. i) Analyzing and determing campaign key performance indicators (KPIs) ahead of launch. and ensure proper measurement across multiple internal and third party data sources. replicable and sholud have information that drives the sales. new phones should be promoted such that consumer should be willing to buy the new phone rather than sticking to old phone. call center. Since the popularity of micromax as medium range mobile maker cannibalize the sales of high end mobile phone. customer relationship management (CRM) system. Measurement of sales promotion and advertisement : Simply allocating budget and doing the promotion and adverstisement will not increase the sles . Currently micromax new phone frequency is high. The question to be answered is that are the purchases made accounts to the loyal customers or it is the new customer population which is buying product. marginal change is sales due change is marketing investment. Promotion in reatils store and internet should be used. as currently the feature phone is higher than smatphone but consumer are switching to smarthphoen because of technological factor and internet based communications. doing more of what works well. These three parameters should be applied to smartphone and featurephone . j) Matric should be simple. b) Analyzing actual results and determining whether your program promoted them. what is the repurchase time or cycle time of purchase of consumer. f) Discount and other benefits given on seasonal sale (festive season) in oder to maximize sales in short period. consumer associate it with only medium (less costly )range mobile phone even though it sells high end phone. 55.20% and 1. Average no.98 million Mobile Units Sold 7.62% of its sales.23 million Advertisement and Promotion Expenses ₹ 501. rebates and discounts however decreased from 3. 2010 Net Income (EBITDA) ₹ 3.05 million Units ROMI 622% Customer Acquisition Cost ₹ 200. of new consumer attracted and No. marketing investment Marketing Performance No. As a percentage of total expenditure. respectively and constituted 3.11 highlights the importance of Brand and promotion activities for Micromax. and endorsement by famous Indian personalities who participate in its marketing campaigns./Promotion change in sales from specific area i.278.26% in fiscal 2010.38 million and Rs.38 million Rebates and Discounts ₹ 160. Micromax advertisement and promotion expenses were Rs. television campaigns. years for which customers uses the product Target Area of advt. 112. retail outlet and online portal because of advt. electronic advertising.66 Marketing % of Customer Acquisition Cost (M%-CAC) 47% ( Marketing Cost ₹ 71.66) ROMI of 622% with Marketing Cost per Unit Sold at ₹ 71. and sponsorship of prominent sporting and film events in India.76 million during fiscal 2010 and 2009.60 million in fiscal 2010. 501. Rebates and discounts increased from Rs. 160.75% in fiscal 2009 to 1.60 million Selling and distribution ₹752./Promotion and marketing Investment on these specific Micromax’s marketing plan comprises advertising in print media.11 / Sale & Marketing Cost ₹ 200.e.70 million Total Marketing Expenditure ₹ 661.Micromax – Marketing Plan Parameters Measurements Revenue Indicator How much extra revenue has the programme generate ROMI Increase in sales wrt.70 million in fiscal 2009 to Rs. of consumer left Profit Per Customer Profit on selling price per product per customer Time Line Average life of product . XLRI GMP 2015-16 46 | Page . Micromax would need to continue to sell focus on Brand and promotional activities to supplement it product innovation and capacity upgrade plans to further penetrate the Indian market. Micromax – Marketing Plan XLRI GMP 2015-16 47 | Page . Electronic Goods like Data Cards also find customers in B2B selling. Tabs: Although Tabs lies in a heavily crowded market segment. wherein all IBM Sales employees get an iPad customized to meet their requirements. but the mobile market is very uncertain and diversifying into several domains makes sense for the firm. Sales force is usually on the move and carrying a laptop is inconvenient. c. but there is still a lot of room for innovation and there lies a potential business opportunity. Google has been promoting its Chrome OS. Micromax already sells tab in the entry level segment. Tablets provide better utility compared to Phones in multiple scenarios due to their large screen size. Micromax can collaborate with Google to power its TVs using Android Operating System. but has not focussed on the same. A smart TV device is either a television set with integrated Internet capabilities or a set-top box for television that offers more advanced computing ability and connectivity than a contemporary basic television set. Micromax can also venture into Internet Connected home appliances such as Smart TV etc. which definitely have better products in higher price segments but not in economy/value segment. Tabs can be customized and sold to Enterprise clients to enable their sales force. Consumer Electronics: Micromax has already ventured into consumer electronics domain. ii. Tabs can be sold to enterprise clients in Education/Research Verticals as a part of smart classroom programs. Tabs can be customized to suit the needs to various users/industries. IBM and Apple have a collaboration for a similar motive. some of the probable examples are discussed below: i. We suggest the following strategy for Micromax to diversify into related domains: a. hence Tabs provide a reliable alternative. It needs to revamp its offerings and increase focus on this market segment. Microsoft is also entering this segment with their cloud offerings. It also promotes BYOD concept in the organization. which works on laptops/notebooks with bare minimum configuration and builds on their cloud infrastructure. Some industry segments can targeted specifically and Micromax will have first mover’s advantage. The tab market is ruled by Samsung and Apple. Data Cards etc. Entry Level Laptops enabled by Cloud: The world is moving on to the cloud now.Contingency Plans Although Micromax has been very successful. This serves dual purpose. b. Internet penetration is on the rise in India and this can prove to be a major business opportunity. It has started offering LED TVs.Micromax – Marketing Plan 7. XLRI GMP 2015-16 48 | Page .it enables IBM employees to carry out their business activities/tasks efficiently and serves as a proof of concept to possible Enterprise Customers for iPad Sales. Having Customized OS allows manufacturers to incorporate the needs the target customers and respond fast to their needs. Launching phones with Customized OS is a huge differentiator in today’s markets and provides value addition to customers. This is a model followed by some of largest Smart Phone manufacturers such as Xiaomi. XLRI GMP 2015-16 49 | Page .Micromax – Marketing Plan d. Software Innovations: Micromax is planning to launch its own version of customized Android Operating System. Meizu etc.